The General Ledger Account for Accounts Receivable Shows a Debit

question 93

Essay

The general ledger account for Accounts Receivable shows a debit balance of $37,500. The Allowance for Uncollectible Accounts has a debit balance of $1,000. Net sales for the year were $375,000. In the past, 2 percent of net sales have proved uncollectible. An aging of accounts receivable accounts results in an estimate of $6,250 of uncollectible accounts receivable. Calculate (1) Uncollectible Accounts Expense and (2) the ending balance of the Allowance for Uncollectible Accounts using (a) the percentage of net sales method and (b) the accounts receivable aging method.

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Definitions:

Instrumental Behavior

Behavior directed toward obtaining rewards or outcomes in a given environment.

Possession-oriented

A term likely referring to individuals or cultures that place high value on owning or acquiring material goods.

Baumrind

A psychologist known for her research on parenting styles, identifying three main types: authoritative, authoritarian, and permissive.

Childrearing Interact

The various ways in which parents and caregivers engage with children to support their development and well-being.